MANCHESTER City's debts have soared to £50m following a spending spree to keep the club in the Premiership.

The wage bill during 2002-03 also rose from £24m to £35m as manager Kevin Keegan splashed out on stars such as Nicolas Anelka, Robbie Fowler and David Sommeil.

But the strategy helped City to finish ninth in the club's last season at Maine Road, and it made operating profits of £1.7m against losses of £5.9m in the previous year.

However, pre-tax losses rose from £13.9m to £15.4m for the year to May 31, as a result of player trading.

The Blues' overall debts increased from £30m after chairman John Wardle and his business partner at the JD Sports group, David Makin, made a loan of £10m to help fund player signings.

Measures were also taken to refinance existing debts through bonds raised by overseas banks.

City made interest payments of £2.56m compared with £1.01m in the previous year.

News of City's position comes during a period in which soccer finances are coming under intense scrutiny.

Just two days ago, Leeds United posted pre-tax losses of almost £50m. The West Yorkshire club is grappling with a £78m debt mountain.

City's managing director Alistair Mackintosh said today the Blues' debts were not a cause for concern because they are secured against the new stadium, a long-term asset.

"The debt is well-structured," he said.

"Leeds' situation was different because there was no new stadium and the players were the security."

Windfall

City's turnover rocketed by 75 per cent from £28m to £49m on its return to the Premier League, thanks mainly to a £20m TV income windfall. Turnover is expected to reach £60m this year. The club is listed on the OFEX market for smaller companies.

Mr Wardle said it had been vital for City to remain in the Premier League.

"Our club has suffered from too many seasons outside the top flight in recent years," he said.

"As we approached the 2002-03 season, it was clear that the greatest risk was relegation. The decision was taken to continue to invest in the squad and this investment paid off handsomely, with a ninth-place finish bringing additional revenue into the club."

The financial results published today reflect the club's eagerness to work towards long-term, sustainable success, he added.

The club has, of course, moved to the 48,000 City of Manchester Stadium, which it is leasing from Manchester City Council. But the club spent £20m on improvements to the pitch, catering and hospitality facilities and the superstore.

Mr Wardle took over as chairman after David Bernstein quit in March following a boardroom wrangle which also led to the departure of chief operating officer Chris Bird, who received a £120,000 pay-off, the equivalent of year's salary, with payments spread over 12 months.

City's survival in the Premiership brought spin-off benefits, such as a boost in merchandise sales. Managing director Alistair Mackintosh said 250,000 fans around the world have bought replica shirts this year.

The wage bill, which rose from £24m, accounted for 70 per cent of turnover. The players were paid a total of £30m.